Atulkumar r.patil Project

8/14/2019 Atulkumar r.patil Project

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- 1 -To study the potential of the channel and expansion of the distribution channel in

Bhusawal. Area.

PROJECT REPORT ON

To Study The Potential Of The Channel And Expansion Of

The Distribution Channel In Bhusawal Area

FOR

HDFC STANDARD LIFE INSURANCE

SUBMITTED TO

G.B.S institute of management & information research

IN THE PARTIAL FULFILLMENT OF

MASTERS IN MARKETTING MANGEMENT

BY

AtulKumar R.Patil

Masters in marketing management (I.U.V)

2007-08

ATULKUMAR--- HDFC-SLIC


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C E R T I F I C A T E

This is to certify that

Mr./ms. ______________________________________________

A student of Masters Degree in Marketing Management (I.U.V) has completed his/her

Project work titled _______________________________________________________

for _____________________________________________________________________

in fulfillment of the partial requirements of the G.B.S Institute University of I.U.V the

course.

The project work and the enclosed report are completed as per the requirements and to

the satisfaction of the project guide.



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Date: h . 2008

CERTIFICATE

To Whomsoever It May Concern

This Is To Certify That Mr. AtulKumar R.Patil, Has Successfully Completed His

Summer Project Titled To Study The Potential Of The Channel And Expansion Of The

Distribution Channel In BHUSAWAL. Area For H.D.F.C. Standard Life Insurance

From 15th June To 15th Aug 05 In Partial Fulfillment Of Course Master In Marketing

Management From G.B.S Institute Of Management & Information Research.

We wish him all the best for all the future endeavors.

Best regards,

(Authorized signature)



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ACKNOWLEDGEMENT

A project usually falls short of its expectations unless guided by the right person at the

right time. Success of a project is an outcome of sincere efforts, channeled in the right

direction, efficient supervision and the most valuable professional guidance.

This project would not have been completed without the direct and indirect help and

guidance of such luminaries. They provide me with the necessary resources and

atmosphere conductive for the healthy learning and training..

At the outset I would like to take this opportunity to gratefully acknowledge the very kind

and patient guidance I have received from my project guide Mr. Tanmay Bhale. Without

his critical suggestion and evaluation at every stage of the project, this project could not

have reached its present form. In addition, my internal guide Mr. Anjum khan has

critically evaluated my each step in developing this project report.

Lastly I would like to thank all the members of HDFC SLIC and my colleagues who gave

me fruitful information to finish my project.

Mr.: Atulkumar

R.Patil



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Bhusawal. Area.

EXECUTIVE SUMMARY

Introduction

Summer training in business organization is to fuse among student a sense of critical

analysis of the real managerial situation to which they are exposed. This gives them an

opportunity to apply their conceptual, theoretical & imaginative skills in real life

situations and to evaluate the results thereof.

HDFC is a name renowned not only in housing but also in banking and insurance sector.

HDFC Standard Life Insurance is now a brand image in private insurance sector. While

two month project, I visited specialized areas to recruit insurance advisor and to find

market potential of other public sectors as well as private sectors. This report is the

written account of what I learned and experienced during my training.

Objectives

Management objectives

To grow through diversification by leveraging off the existing client base.

To transform ideas into viable and creative solutions.

To develop close relationships with individual households. Research objectives

To gain familiarity with a phenomenon or to achieve new insights into it.



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To recruit Insurance Advisor for HDFCSLIC on the presence of various

competitors and difficult traditional market situation.

Sub objectives

To find out new way of sales promotion techniques as well as recruitment

techniques also and distribution network to generate business.

To find out the attitude of new customers and existing customers towards

HDFCSLIC

Research Methodology

The research was an exploratory type of research, which aimed at estimating the true

potential of the market concerned and also an analysis regarding the market potential.

The tools used for this purpose were questionnaire and telephonic interviews. The

research methodology comprised of the following

Problem identification

Research objectives

Developing research plan

Data collation

Data processing and analysis

Findings

Recommendations

Conclusion



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Key Finding

Expansion of the channel of Financial Consultants is not very attractive.

Conclusion

Alternate channels should be developed in order to increase the reach of

HDFCSLIC products.

Limitations

The prospects were not willing to invest the required fees for the training

provided by HDFCSLIC.

Most of the respondents were pressed for time due to pre-occupation

Recommendations

HDFCSLIC should try to enhance the Internet channel.

Bancaasureance.



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INDEX

INTERODUCTION 4

INDUSTRY PPROFILE & ANALYSIS 5-19

COMPANY PRIFILE 20-49

LITERATURE SURVEY 50-55

OBJECTIVE 56

RESEARCH METHODOLOGY 57-67

FINDING AND ANALYSIS 68-83

LIMITATION 84

CONCLUSION 85-86

RECOMMENDATION 87-88

BIBLOGRAPHY & QUESTIONNAIRE 89



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INTRODUCTION

Most producers do not sell products directly to final users. Between them stands a set of

intermediaries performing a variety of functions. A marketing channel is a set of

interdependent organizations involved in the process of making a product service

available for use consumption. It is also a system of relationships among businesses that

participate in the process of buying & selling products.

The project was undertaken, with the objective of expanding the marketing channel of

HDFCSLIC. Thus for the attainment of the objective a questionnaire was prepared. The

questionnaire involved questions relating to an individuals age, qualification, income,

social base etc. This information was thus helpful in identifying an individuals interest in

HDFCSLIC. It also provided information relating to whether the marketing channel had

any prospects of expansion or not.

The purpose of the project was to study the population, determine the characteristics and

thereby draw an inference, to know how effective and efficient the channel is. The project

though had to face the constraints like lack of time, interest and also the problem of

communication, which led to a low conversion rate of likely prospects.Thus as a recommendation to refine the channel and make it more effective and efficient,

Internet channel and banc assurance could be used.



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INDUSTR Y PR OFIL E AN D AN ALYSIS

Development of Insurance Sector:

Insurance is one of the important instruments designed to deal with risk through sharing.

Insurance is related to protection of the economic value of assets. Every asset has a value.

The asset would have been created through the efforts of the owner in the expectation that

either through the income generated there from or some other output, some of his needs

to be met. However if the asset gets lost earlier, being destroyed or made non functional

through an accident or other unfortunate event, the owner and those deriving benefits

their from suffer. Insurance is a mechanism that helps to reduce such adverse

consequences.

In this simplest aspect it is imbues with two fundamental characteristics:

a) It transfer risk from one person to a group, and

b) It facilitates sharing of losses, on some equitable basis, by all members of group.

The importance of insurance is two folds.



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From Individuals point of view:

Insurance is an economic device whereby the individual substitutes a small certain cost

(the premium) for a large uncertain financial loss (the contingency insured against) that

would exist if it were not for the insurance.

From the social point of view:

Insurance may be perceived device to be an economic instrument, which reduce and

eliminates risk through the process of combining a sufficient number of homogeneous

exposure into a group and makes the losses predictable for a group as a whole.

Chronological Development Of Insurance Sector:

1818

Establishment of British firm Oriental Life Insurance in Kolkata.

1823

Establishment of Bombay Life Insurance in Company.

1912

The Indian Life Assurance Companies Act 1912.

1928

The Indian Insurance Companies Act was enacted the Government Collect statistical

information about both life and non-life insurance business transacted in India-by-India

and foreign insurers.



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1938

The 1928 Act was consolidated and amendment by the Insurance Act with effective

control over the activities of insurance.

1950

The Act was amended resulting I in far reaching changes in the insurance sector,

including a statutory requirement of equity capital for companies carrying on Insurance

business, ceiling on the shareholdings in such companies, stricter control on investments

submission of periodical returns relating to investments and such other information to the

controller.

1956154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on

life insurance business in India mostly concentrated in Urban Areas

On January 19 the management of life insurance business of 245 Indian and provident

societies, then operating in India, was taken over by the Central Government. An Act of

Parliament,Viz. LIC Act 1956, with a capital contribution of Rs. 50 million, formed Life

Insurance Corporation in September 1956. One justification of the nationalized was the

need to raise the funds for rapid industrialization and this justification still hold for

liberalization of Insurance Sector for a faster development of infrastructure and basic

facilities in India.



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1971

Management of Non-life insurers was taken over by the Central Government as a prelude

to nationalization.

1972

Watershed in the history of General Insurance Business in India. General Insurance

business was nationalized with effect from Jan 1, 1973 by the General Insurance Business

(Nationalization) Act, 1972 Prior to 1973, general insurance was urban centric, catering

mainly to the needs of organized trade and industry 107 insurers including branches of

foreign companies operating the country were amalgamated and grouped into four

companies, viz the National Insurance Company Ltd. The Oriental Insurance Company

Ltd, The New India Assurance

Company Ltd, and The United Insurance Company Ltd, GIC was incorporated as a

company in 1972 and commenced business on January 1st 1973.

The Government subscribed to its capital that, in turn, subscribed to the capital of the

four companies. GIC was designated as the reinsure under the Insurance Act, to which all

the domestic insurers were obliged to cede 20% of the gross direct premium in India. In

order to ensure maximum retention in the country and to secure the best terms from

foreign reinsures, GIC and its subsidiaries have a common program for reinsurance

cessions.



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THE ROLE OF MALHOTRA COMMITTEE

1993: First step To Liberalization Malhotra committee termed to recommend measures to

deregulate Indian Insurance Sector. The following recommendation was forwarded to

liberalize the Insurance sector.

1. The private sector should be allowed to enter the insurance business, but no

Single company will be allowed to transact both life and general insurance

business. The number of entrance should be controlled.

2. The new entrants shouldth write a specified portion of their business in rural

areas.

3. Minimum paid up capital of new entrant should be 100 crores. The promoters

Holding in a private business company should not exceed 40% of the total.

However, if the promoters wish to start with a higher holding, they should be

permitted to do so provided their holdings is brought down to 40% within a

specified time through public offerings.



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4. If and when the entry of foreign insurance companies is permitted, it should be on

a selective basis. They would be required to float an Indian company for the

purpose, preferably as a joint venture with an Indian partner.

5. The controller of insurance should effectively start functioning before the Private

sector is allowed to enter the insurance field.

6. Regulatory and prudential norms as well as conditions for ensuring level playing

fields among insurer should be finalized early so that intending entrants are aware

of to insure that the life insurers do not neglect the small man of rural business

and general insurers have balance portfolio and

7. Though the nationalized insurance companies are in a position to face

Competition, it is essential that they quickly upgrade their technology, recognize

themselves on more efficient lines.

The Liberalization of the insurance sector has been the subject of much debate for some

years. The policy maker were in the catch of twenty-two situation where in for own they

wanted competition, development and growth of this insurance sector which is extremely

essential for channeling the investments in the policy makers had the fears that the

insurance premed which are substantial, would slip cut of the country and wanted to have

a cautious approach of opening for foreign particular in the sector. IRDA came into

picture with its important provision.



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IMPORTANT PROVISION OF IRDA ACT

IRDA have laid provision regarding Insurance Industries. Some of the important

provisions are:

Foreign equity has been capped at 26% No separate provision for NRIs and FIIs

has been made in the bill.

The bill grants domestic insurance companies ten-years time to reduce the equity

to 36% level. It means that the Indian promoter will have to dilute its stake in the

private insurance firms from 74% to 26% in ten years.

The minimum capital has been prescribed for life and general insurance at Rs. 100

froes and Rs. 200 crores for re-insurance firms. The government has also set

minimum solvency and deposit norms. The solvency margins are Rs. 50 crores for

life Insurance business. The minimum deposits to be maintained by life insurers

has been set at 1 percent of the gross premium received in the year, subject to a

ceiling of 100 crore.



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The bill also requires the insurer to maintain separate account relating funds of

Shareholders and policyholders. It further stipulates that the funds of the

Policyholders should be retained within the country, thus ensuring that the Indian

Policyholders funds dont find their way outside India.

Rural Insurance is being made mandatory but Insurance Regulatory

Development Authority (IRDA) would set the percentage of rural to Urban

insurance.

The investments norms are applicable to the nationalized insurers will also

apply to the new entrants. The investment guideline ensures 25% of the

investments in liquid assets to ensure against asset-liability mismatches.

It denies the insurance companies any investment in private limited

company; the investments need to be restricted to 10% of the insurers

inventible corpus.

Presently 755 of investments are under the direct category. The remaining

25% can be placed with corporate in the form of loans etc. besides; no

investments in foreign securities would be allowed. The divestment of the

United Kingdom Government securities for LIC and GIC is evident of the

fact that even the government backed Insurance Institutions would be

allowed to invest in foreign securities.



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LICENSING OF INSURANCE AGENT, (Regulation, 2000)

The IRDA has announced regulation pertaining to licensing of insurance agent, which has

come into force with effect from 14th July 2000.

Qualifications An insurance agent should satisfy the following

Requirements:

Posses a minimum educational qualification of 12th standard or equivalent .

Completely one hundred hours (100) of practical training in life insurance business, from

an approved institution, where the applicant is seeking a license for the first time to act as

an instance agent. This training requirement is relaxed in certain situation where the

applicant possesses professional qualification.

Pass the pre-recruitment test, based on an examination conducted by the Insurance

Institute of India (III) or another approved body.

Have the requisite knowledge to solicit and procure insurance business.

Be capable of providing necessary service to the policyholders.



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Agent licensed before the regulations were notified will be exempted form the

requirements pertaining to minimum educational qualifications, practical training and

certificate requirements.

We would, however, be happy to provide them training to enhance their skills should they

wish to associate with us.

THE AGENCY SYSTEM

Clause 3 of the regulation provide that an agent can represent only one life insurer or one

general insurer or both, at a time.

This implies that the agent will have to terminate his/her contract, if any, with an existing

Life or general insurer before joining another life or general insurer.

A person having both agencies, life and general, shall be known as a Composite Agent.

In addition to this , all licenses renewed prior to notification ot the new regulations will

be valid for a period of three years.

The training referred to in the regulations, will be initially organized by HDFC

STANDARD LIFE INSURANCE COMPANY LTD. This training will enable theapplicants to qualify for the pre-recruitment examination to be conducted by the

Insurance Institute of India (III) or any other approved examination body.



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COMMISSIONS

The rewards of selling Insurance are lucrative:

The limits on commission as provided in the Insurance Act

1938 are as under:

Type of Policy Commission Limits

Immediate Annuity 2% of premium

Deferred Annuity

(Single premium)

2% of premium

Deferred Annuity

(Regular premium)

7.5% of the 1st years premium.

2% of each renewal premium.All Other

Cases(Endowment,

Money back, etc)

A maximum of 40% of the first years

premium.

A maximum of 7.5% of the 2nd & 3rd

years premium.

A maximum of 5% of the renewal

premium.

Total commission payable in the first 5

years cannot exceed 60% of the annual

premium payable on the policy.

Here commission structures will be competitive

Role of The HDFC Standard Life Agent The Consultant

The companys agent would be a professional salesperson and

would be given the designation of a Consultant by the company.



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The consultant would act as a financial advisor to the customer.

He/She would:

Analyze the customers financial requirements.

Help them plan their goals and

Recommend appropriate solutions, so that the customer is

able to meet his/her financial objectives in the most optimum

manner. He/She shall provide support to customers on an

ongoing basis.

The company would also support the Consultant by the repuires

training and information so that he/she is able to provide the best

service to customers.

Thus, the companys Consultant would have a far wider role to

play than the typical Insurance Agent.

Corporate Agent The second distribution channel:

Who can be a Corporate Agent?

According to the Licensing of Insurance Agent Regulation, 2000,

Corporate Agent is defined as a person other than an individual

as specified in clause (1), i.e. a firm , a company formed as defined

in clause (4A) of Section 2 of the Act

Present Regulations



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Tied agency with only one life insure or general insure or both, at a

time.

All directors and employee in the business of soliciting or carrying

out insurance business need to undergo the necessary practical

training so as to hold an insurance license issued by IRDA.

The memorandum of Association or the Partnership Deed should

include as its main object the carrying out or soliciting of insurance

business.

Why should be a Corporate Agent with us?

You can offer an important financial product to your silent.

It provides you with another major revenue stream.

You can leverage the promoters brand equity.

You can provide security to your clients by association with

HDFC Standard Life.

You will be offering superior service standards.

HDFC Standard Life offers economies of scale

Who are we looking for?

A person having-

A well-established infrastructure and client base.

A good background of financial services/experience in the

distribution of financial products.



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An excellent geographical reach.

Potential in the Insurance Sector

Scope of Insurance Business in India:

The Malhotra Committee estimated that the insurance operation

penetration in India is to the extent of about 25% of insurable

population. As of 1999-2000, LIC has about 10 crores policies in

force, which contribute a Premium of about 6% of the GDS (Gross

Domestic Savings) of household in India.

Based on a report by the Confederation of Indian Industries (CII),

it is anticipated that this figure of 10 crores policies in force is

likely to double in the next decade. By the year 2010, the premium

income is expected to account for 18% of the Gds, amounting to

Rs. 5,12,000 crores.



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HDFC STANDARD LIFE INSURACE

MAN WITH A MISSION

An extract from the book A Tribute

If ever there was a man with a mission it was Hasmukhbhai

Parekh, our Founder and Chairman Emeritus, who left this earthly

abode on November 18, 1994.

Born in a traditional banking family in Surat, Gujarat, Mr. Parekh

started his financial career at Harkisandass Lukhmidass a leading

stock broking firm. The firm closed down in the late seventies, but

long before that, he went on to become a towering figure on the

Indian financial scene.

In 1956 he began his lifelong financial affair with the economic

world, as General Manager of the newly formed Industrial Credit

and Investment corporation of India (ICICI). He rose to become

chairman and continued so till his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life, even

more illustrious than his first. His vision for mortgage finance for housing

gave birth to the Housing Development Finance Corporation it was a

trendsetter for housing finance in the whole Asian continent.He was a true development banker. His building up HDFC without any

government assistance is itself a brilliant chapter in financial history. His



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wisdom and warmth drew people from all walks of life to him, for advice,

guidance and inspiration.

A soft-spoken man of grew words, Mr. Parekh nevertheless held strong

and definite views with a quiet conviction. He was always concerned with

building bridges,, improving and encouraging communication between

people.

He was also a writer in his own right. There are over 200 published

articles by him, full of incisive comments on finance and economics. In

1953 he brought out a volume called: The Bombay Money Market. Ir

detailed the intricate working of the Indian money market. His works in

Gujarati Hirane Patro, Hirane Vandhu Paro occupy pride of place in

Gujarati literature. In 1992, the Government of Indian honored him with

the Padme Bhusnan Award. The London School of Economics & political

science conferred on him with the Padma Bhushan Award. The London

School of Economics & political science conferred on him an Honorary

Fellowship.

But there was much more to the man than his financial genius. In his own

unassuming way, Hasmukhbhai devoted all his life to raising resources for

philanthropic causes. He was one of the Founder Members of the Center

for Advancement of Philanthropy, and its Chairman till 1993 he till activeinterest in the Bombay Community Pubic Trust. Designed spastically to

serve the needs of the citys underprivileged citizens.



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When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he

said: Taking over form H.T. Parekh is a formidable task; his vision

brought about not only an institution, but an entire concept which has

proved itself to be of lasting importance.

In his last years, developments in the financial sector brought him some

measure of satisfaction. Says ICICI Chairamn, N. Vaghul: The most

gratifying aspect about his life is that values he cherished all his life, came

into reality in the last years opening up the financial sector, and

deregulation of lending rates were issues he stood for all his life, and this

happened before hipassed away.

Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the

financial wizard, but also much more so, the man. The only and best

tribute we can pay to such an individual is to try and follow in his

footsteps, keeping in mind his high ideals and philanthropic outlook

OBJECTIVE & BACKGROUND

Housing Finance Sector

Against the milieu of rapid urbanization and a changing socio-economic

scenario, the demand for housing has grown explosively. The importance

of the housing sector in the economy can be illustrated by a few keystatistics. According to the National Building Organization (NBO), the

total demand for housing is estimated are 2 million units per year and the

total housing shortfall is estimated to be 19.4 million units, of which



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Organizational Goals

HDFCs main goals are to

Develop close relationships with individual households

Maintain its position as the premier housing finance institution in

the country

Transform ideas into viable and creative solutions

Provide consistently high returns to shareholders

To grow through diversification by leveraging off the existing

client base.

SOCIAL INITIATIVES

The year 2004-05 saw HDFC making renewed efforts in fulfilling

its social commitment by way of several ongoing as well as new

initiatives. The latter included innovative financing of slum up-

gradation and low-income housing projects, dialoguing with key

stakeholders on policy issues, responding to the tsunami tidal wave

disaster and staff volunteering and participation in varied

community development activities. HDFC also gained special

recognition for its corporate social responsibility (CSR) function in

the form of winning the Economic Times Corporate Citizen Awardfor 2003-04.

Shelter Assistance Reserve



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During the year, the Shelter Assistance Reserve continued to play

its role of participating in and supporting various meaningful

development initiatives by extending grant funding over 135

NGOs, philanthropic and boundary agencies, local bodies and

others. The overall utilization effected out of the Reserve for the

year 200405 stood at Rs. 497.36 lacs and its segment-wise break-

up is highlighted in the chart below:



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Cited below are a few case examples reflecting the general

utilization of the reserve?

Human Development Center Trust

It started in 2002 with a mere 16 children, 7 teachers and 2

classrooms, Now, three years later, the Little Angels School, run

by the Human Development Centre Trust has 78 children on its

rolls (with another 80 on the waiting list), 35 staff and 5

classrooms. This school is for children who are differently made,

yet no different from us. It caters to children facing problems such

as hyperactivity, slow learning, attention deficit disorders, dyslexia

and other such physical and mental handicaps.

The school takes in children from all strata of society offering pre-

vocational training, speech therapy, basic education and vocational

guidance to the students. Each child is offered a unique

programmed based on his/her current status of mantel and

physical development. Programmers that motivate him/her to go

beyond their perceived level of competencies. The focus is on

trying to make the children self-reliant, for instance to able to

operate a bank account or even to shop for essential commodities

on their own. Currently the school operates from the premises of amunicipal school in Bandra, Mumbai. It has classes from

Kindergarten to the 10th standard and some of the student and some

of the students has appeared for the Open School Examination in



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New Delhi. HDFC has recently got involved with the schools

activities and has funded the Trust towards improving the schools

facilities and partly supporting staff expenses.

A glimpse into Chetnas day

It is estimated that there are more than 400,000 deaf-blind people

throughout the country. It works in partnership with local

organizations, deaf-blind children and adults, their families and

professionals to ensure that everyone challenged with this

disability has access to advice, opportunities and support.

HDFCs Chas partnered with Sense India to support the dear-blind

population in the states of Tamil Nadu and Uttar Pradesh along

with ten local NGOs. The aim is to reach out to the children in

these states who are not getting any kind of services and to

integrate them into local schools with children who have residual

vision and hearing.

Help Age India

Although ageing is an irreversible biological phenomenon, in

todays times it is associated with denial, depression, loneliness

and a certain degree of alienation from mainstream family life.

Further, with gradual improvement in public healthAnd standard of living, the average longevity of the people is

increasing; the elderly populace is in fact one of the fastest flowing

sections of society in India. The major concerns, however, remain,



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to be security, both financial and physical, access to health and

support systems and incidence of violence and abuse

Established in 1978 with support from Help the aged in the United

Kingdom, help Age India is working for the cause and care of

senior citizens, with the ultimate aim of empowering them to take

decisions pertaining to their own lives. Help Age supports almost

all the Old Age Homes in the country. It runs various programmers

to make life easier for the elderly with free cataract operations

performed in villages, the adopr-a-gran scheme, mobile Medicare

units all over the country, encouraging economic independence

measures, etc.

During the year, HDFC has partnered Help Age India by

sponsoring 200 free cataract operations in the interiors of

Rajasthan and Gujarat. In support of the elderly populace in the

country, HDFC also funded Dignity Foundation, an NGO working

with senior citizens, to come out with a calendar in Braille.

Population First

India has 16.7% of the worked population but only 2.45% of

the worlds land resources and 4% of the worlds water

resources.

Over the last 10 years, India added 180,627,359 persons to its

population, equivalent to the population of Brazil.



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Ninety-three out of every 1,000 children in India die in the

first five years of their life.

One in four infants in India are born with a low birth weight

less than 2.5 kilograms.

The statistics are grim and what makes it worse is that vary little is

known of what it makes to be a part of such horrific numbers.

Population first is working to support the programmers of the

Government towards population stabilization in the country. The

organization engages corporate houses, the media and civil society

on issues concerning health and population in India. The mission is

to sensitize the country into accepting that population growth is a

key problem facing country today.

Population first has taken up Thane District, Mumbai as one of its

project areas. The project focuses on issues relating to awareness,

and seeing awareness translate into action. HSFC has been an

active supporter of Population First and its activities since its

inception in 2002 and is currently funding the launch of a project

for the girl child called Laadli Mobile Creches.

A typical day at a Mobile Creches Center:

The Mobile Creches center id located on a construction site, next

to the jhuggis where the workers live. No gardens or

playgrounds for the children are here, only gaping foundation pits,

piles of bricks, and a dry, cement dust in the air. The center is a



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temporary structure, about 250 square feet in size walls of bare

brick and a roof of tin sheets. The room is divided in to three

parts; the crche for children under 2 years, the balwadi (pre-

school) for the 3-5 year olds, and non-formal-education (NFE) for

6 years and above. Bright collages give the room an sair o f

festivity, Modesrt though it is, the center is a triumph for Mobile

Creches.

By 9:00 a.m., the mothers arrive to leave their babies for the day

The Creche (0 -2 yrs old): The centering-charge manages the cent

with the help of four other childcare workers. The time is spent

feeding the crche children and taking care of them.

The Balwadi (3 -5 yrs): The children in this section are kept busy

in small groups. T-Free play, story telling exercise etc. keeps the

children occupied.

NFE (6 -12 yrs old): The older children are taught some

communication skills, basic English mathematics general

knowledge etc.

The centre is bustling with activity to 4.30 p.m. when the mothers

start arriving to pick up their children. Over 450 such day-care

centers have been step up onBuilding sites as well as slum clusters in Delhi, Mumbai and Pune

for children of migrant construction workers. HDFC has been

consistently supporting Mobile Crches with grant funds for



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Bhusawal. Area.

several years, including a day-care center in a slum at Dakshinpuri,

New Delhi since 2002.

Rashtriya Gramin Vikas Nidhi (RGVN)

RGVN descries itself as an organizational innovation in support of

social action. Set up in 1990 and headquartered at Guwahati,

Assam, RGVN seeks to improve the quality of life of the urban,

rural and trivial and trivial poor in the northeast region and other

eastern states by providing financial, technical, managerial and

other support service. Despite and militant conditions, RGVN has

been able to make its mark as a professional development support

agency.

RGVN does not restrict it self to a defined area of activity.

Typically, any activity that has the potential to generate sur5plus

and raise the income levels of the poor in a self-sustaining way, is

to RGVN an activity that needs to be encouraged., The principal

activities undertaken over the past decade have been promoting,

supporting and building the capabilities of voluntary agencies and

local NGOs that are engaged in development; running a savings

and credit programmed; low cost housing; and more recently,

initiating work in the field of education.HDFC has been associated with RGVN since 1997 in the area of

housing loans for the economically weaken r section households.

In response to the flood situation in Assam during July 2004,



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Bhusawal. Area.

RGVN engaged in several flood-relief activates. As a long-term

measure, HDFC has sponsored the construction of an emergency

shelter in Morigaon District. The 1,000 sq.ft. Shelter has been

constructed in the premises of an educational institution and can

accommodate unto a hundred flood victims in times of need. At

other times, it would faction a multi-purpose community facility.

EMOPLOYEE INITIATIVES

The employees a HDFC are invariably enthusiastic to participate in

and in organizing social activates whenever such and opportunity

arise, During the year, HDFC staff at Bhubaneshwar, Aurangabad

and Andheri (Mumbai) organized dreading and painting

competitions under the banner of The Little Artist Contest for

primary school children. HDFC was also the exclusive sponsor of

the Kids World Exhibition 2004 held in Mumbai in June 2004,

which included the showcasing of artifacts from the NGO Child

Relief and You (CRY).

The end of the year saw an Origami workshop being conducted by

the Chamber office for the students of St. Anthony Girls High

School. Origami is an art that gives life to paper and imagination

and engaging in it is a well-known way to calm the mind andenhance creativity and concentration. The Bangalore office lent

support to a social campaign organized by school children in

association with an NFO Buoyancies. The campaign armed at



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Bhusawal. Area.

creating awareness on the issues of environment, education and

population explosion.

The Nashik office hosted a blood donation camp with eminent

doctors supporting the cause by spreading awareness about blood

donation myths and facts. The camp was a success and saw

participation from HDFC customers as well.

Mumbai Marathon

On your mark: get set: go

An average Mumbaikar spends much of his time running after

either local trains or buses; however, January 16, 2005 gave

thousands of Mumbaiites one more reason to run the Mumbai

Marathon 2005 reflecting the zealous spirit of the city.

Not to be left behind was our was our enthusiastic staff from the

Mumbai region. 75 HDFC employee formed th HDFC Team to

run for The Akanksha Foundation, an NGO involved in the

education of and creating opportunities for slum and street

children. The Vasundhara Vriksh Vanwadi Jalsinchan Bikas

Sahakari Mandali Ltd. (VVSM) or the Vasundhare Cooperative

Society in short, was promoted by the Dharampur Utthan Vahini

(DHRUVA), an associate organization of BAIF DevelopmentResearch Foundation. DHRUVA is a community-based yet

professional organization set up in 1995 for sustained

intensification of BAIFs wadi-initiative, a comprehensive rural



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Bhusawal. Area.

development prigramme in the tribal villages of Bansda block

(district Balsad) in southern Gujarat. The VVSM is a locally

managed farmers the chief guest, Ms Anu Aga, Director thermal

Ltd., handing over the Trophy for the first prize to SAATHI, an

NFO form Mumbvai co-operative society who have come together

with the aim of owning a Wadi (a small orchard, developed on

wastelands) each and then jointly cultivation, processing and

marketing their produce, Most of the farmers specialize in

cultivation mangoes. The then also process the mangoes to deliver

packaged products such as pickles, mango-pulp, jams and squash.

VVSM and DHRUVA initially approach HDFC IN June 2000 with

a proposal to finance their miscellaneous funding requirements.

HDFC sanctioned a loan of Rs. 49.28 lacs under the MFF,

structured flexibly with a term loan component and a working

capital component having quarterly and half- yearly repayments.

The loan also allowed a moratorium on principal for six months.

Subsequently, HDFC advanced similar loans of Rs. 30 lacs in May

2002 and Rs. 40 lacs in April 2003. The loan funds are utilized

towards bulk purchase of mangoes at standard rates form the

farmers. The mangoes are then sorted for immediate processingand storage. The family members of the farmers are employed in

processing of these mangoes into pickle and pulp. These by-

products are then branded and sold under the banner of



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Bhusawal. Area.

Vrindaven, Apart from generating profits for the farmers the

loans have also ensured employment during off seasons. During

the year, HDFC sanctioned and disbursed another loan of Rs. 36

lacs, taking the cumulative disbursements to the co-operative to

Rs. 156 lacs.

Grameen Crafts first approached HDFC in early 2001 for a

working capital loan of Rs. 8.17 lacs to strengthen their operations

in the area of handloom and handicraft (ceramic) products. The

loan tenor of three years from HDFC allowed the agency to

revolve the funds for expanding these activities. With their

successful marketing and sound performance in repayment as well

as implementation, HDFC had no hesitation in approving a second

loan of Rs. 12 lacs in December 2002 towards export orders for

textile, ceramic (pottery) and leather products. The associated

artisan producer groups have benefited with an average income

growth ranging from 30% to 60%, besides improved and safe

working conditions and insurance cover. During the year,HDFC

Sanctioned a third loan of Rs. 30 lacs (against project cost of Rs.

55 lacs) of which Rs. 18 lacs stood disbursed as on March 31,

2005.Ainancing Slum Rehabilitaion and Up-gradation

Ganesh Nagar d CHS at Mahalatme, Mumbia



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Bhusawal. Area.

A number of residents are employed as Grade IV staff with the

municipal corprtation and some work in the private sector too.

However, due to the very high denstities and avsence of proper

sanitation and drainage infrastructure, the living conditions are

rather sub-human, similar to the larger slums surrounding it. Most

of the other slum-dwellers in the area and their co-operatives have

decided to sallow an outside builder to come and redevelop their

sites under the state governments Slum Rehabilitation Scheme.

The SRS on the other hand could successfully motivate the Ganesh

Nagar S Co-operative Housing Society (also an outcome of SRS

efforts) to put themselves into the developers shoes and take

charge of the implementation themselves.

The housing project envisages construction of three buildings with

a total of 520 residential and commercial units, each admeasuring a

carpet area 225 sq.ft. of these 416 units are meant for the members

of the co=operative including the incentive area allowed to the

NGO and the CHS for assuming the role of a developer. The

remaining 104 units being the free sale portion comprise shops and

apartments which can be sold to subsidize the cost of construction.

Sue to the high density, the sale area on site was bound to be verylittle, and therefore transferable development rights (TDR) would

form a majo revenue stream for the project. The total project cost



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Bhusawal. Area.

of approx. Rs. 950 lacs is to be recovered from the sale of slum-

TDR and the free-sale portion.

HDFC has been incolved with this project since 2002, when the

SRS and the co-operative were doing the groundwork on social

mobilization, obtaining building permission indentifying a

contractor eith expertise in low-cost construction and assessing the

economic feasibility of the project. In order to ease the stretched

cash flows and improce the ocverall viability, HDFC suggested a

self-help approach wherein each member would contribe an

amount of Rs. 50,000-65,000 towards the construction cost with

the understanding that any surpluses at the end of the project shall

be shared equally. HDFC held several rounds of discussions with

SRS and the CHS managing committee to determine an acceptable

implementation framework and a suitable financial plan, which

was finally agreed upon by all the slum residents in their general

body meeting.

The construction activity has been spit into three separate phases

(i.e three buildings) to be completed in an estimated 18-24 months.

HDFC initially approved and disbursed a loan of RS. 20 lacs to the

SRS for the preliminary expenses of Phase I. Subsequently, HDFCsanctioned a line of credit of Rs. 100 lacs to the Fanesh Nagar D

CHS, funds from which can be drawn and repaid anytime during

the term of 24 months. In the absence of a conventional security



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Bhusawal. Area.

such as the mortgage of the land or constructed units, HDFC

approached CORDAID, a Dutch donor agency to partly guarantee

this line (up to Euro 1,50,000) against the payment of a guarantee

commission. So for, Rs. 25 lacs has been disbursed out of the line

and Phase I is now nearing completion.

SEWAs Parivartan initiative at Ahmedabad

The Parivartan Slum Up gradationProgramme of the Gujarat

Mahila Housing SEWA Trust (better kinown as MHT, a sister

organization of the Self-employed Womens Association) was

launched in 1995. Also kinown as a slum-networking project,

Privates brings basic infrastructure services, including water and

sanitation, in an affordable and sustainable way to the slums and

chawls of Ahmedavad city. The idea is to forge a tri-partite

collaboration, between the Ahmedabad Municipal Corporation

(AMC),the target communities (slum residents organized with

MHT facilitation) and the private sector.

This partnership envisages a cost sharing mechanism for the

provision of following basic urban services: paving internal

reads.underground sewerage link and water supplu to individual

households. Storm water drainge street linghing and solid wastemanagement. The core philosophy is to recognize that the

community can be an informed client willing to pay for the initial



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Bhusawal. Area.

costs and maintenance of these services and also participate in their

design and implementation.

HDFC has been associated with SEWA,SEWA Bank and their

affiliate MHT for over a decade through funding of various

projects involving micro-enterprise development, low income

housing and earthquake rebuilding measures. Taking this

relationship forward, in June 2004, HDFC sanctioned a line of

credit of Rs. 35 lacs to the MHT, allowing flexible drawls and

repayments. To finance the expansion of the privation programmer

in five slum pockets of Ahmedabad, expected to benefit over 600

households.

The line operates similar to bridge loan to meet the ongoing

construction expenses of the MHT (which also functions as a

contractor) for executing the work orders issued by the AMC. The

AMC then reimburses these costs after inspecting the completed

civil work, which forms the repayment to HDFC. An impact

assessment study carried out by SEWA Academy highlights the

overall empowerment of the residents and positive developments

in the area of health and hygiene, primary education, income and

productivity, social status and also a better relationship with otherlocal authorities. HDFC is now extending this line of credit for

another year, which may be useful to MHT in replication this

initiative in the cities of Surat and Vadotara.



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Bhusawal. Area.

In January 2005, the MHT together with the Ministry of Urban

Employment and Poverty Alleviation organized a two-day

symposium on the National Slum Development Programme:

Achievements and Opportunities. HDFC contributed a policy

paper titled Issues in Financing Slum Infrastructure that was

published as part of the conference literature.

Responding to the Tsunami Disaster

The tsuami catastrophe of December 26,2004 has caused

unprecedented devastation in the coastal destricts of Insia. In the

immediate aftermath, HDFC made a grant conrribution of Rs. One

crore to the Prime Ministers National Relidf Fund. Further to this,

HDFC employees voluntarily decided to torego a days salary or

more, thereby raising over Rs. 13 lacs.

HDFC also extended support to its micre-finace clients, i.e. those

existing MFF borrowers who became victims of the calamity,

through NGO intermediaries. The agencies include Mugavai

Kalanjia Mahalir Vattara Sangam, a federation of DHAN

Foundation at Mandapam block, Center for Appropriate

Technology (CAT) at kanyakumari and the Indian Association for

Savings and Credit (IASC). The Overseas Private InvestmentCorporation (OPIC), a development agency of the United States

Government has approached HDFC to explore channeling of grant-



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Bhusawal. Area.

cum-loan funds for rehabilitation measures in the tsunami-hit

areas.

IN CONCLUSION

HDFC has always believed in the enduring business advantage of

doing the right thing having well-defined purpose, adhering to

our core values and giving back to the society thereby gaining in

terms of not only customer loyalty and employee satisfaction but

also profitability.

In this context, HDFC was among the first Indian corporate to join

the Global Compact an international imitative that brings

companies together with UN agencies, labor and civil society to

support universal environmental and social principles. HDFC

remains wholly committed to the Global Compact and strives to

further its cause by upholding its ten principles in the areas of

human rights, labor, the environment and anticorruption.

As our Chairman, Mr. Deepak Parekh quoted the following words

of John Wesley, the 18th century evangelist, while accepting The

Economic times Corporate Citizen Award won by HDFC for the

year 2003-04:

FUTUREHDFC has always been market-relented and dynamic with respect

to resource mobilization as well as its lending Programme. This

renders it more than capable to meet the new challenges that have



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Bhusawal. Area.

emerged. Over the years, HDFC has developed a vast client base of

borrowers, depositors, shareholders and agents, and it hopes to

capitalize on this loyal and satisfied client base for future growth.

Internal system have been developed to be robust and agile, to take

into account changes in the volatile external environment.

HDFC has developed a network of institutions through

partnerships with some of the best institutions in the world, for

providing specialized financial services. Each institution is being

fine-tuned for a specific market, white offering the entire HDFC

customer base the highest standards of quality in product design,

facilities and service.

MANAGEMENT

HDFC is professionally managed organization with a board of

directors consisting of eminent persons who represent various

fields including finance, taxation, construction and urban policy &

development. The board primarily focuses on strategy formulation,

policy and control, designed to designed to deliver increasing value

to shareholders.

Board of Directors

Mr. D S Parekh ChairmanMr. Keshub Mahindra Vice

Chairman

Mr. Renu S. Karnad Executive

Mr. D N GoshDr. S A Dave

Mr. S Venkitaramanan

Dr. Ram S Tarneja



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Bhusawal. Area.

Director

Mr. K M Mistry Managing

Director

Mr. Shirish b Patel

Mr. B S Mehta

Mr. D M Sukthankar

Mr. N M Munjee

Mr. D M Satwalekar

HDFC has a staff strength of 1029, which includes professionals

from the fields of finance, law, accountancy, engineering and

marketing.



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Bhusawal. Area.

HDFC STANDARD LIFE INSUTANCE

The Partnership:

HDFC and Standard Life first came together for a possible joint

venture, t enter the Life Insurance market, in January 1995. It was

clear from the outset that both companies shared cililar balues and

beliefs and a strong relationship quickly formed. In October 1995

the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC,

further strengtherning the relationship.

The nest three years were filled with uncertainty, due to changes in

government and ongoing dalays in getting the IRDA (Insurance

Regulatory and Development authority) Act passed in Parliament.

Despite this both companies remained firmly committed to the

venture.

In octover 1998, the hoint venture agreement was renewed and

additional resource made available. Around this time Standard Life

Purchased 2% of Infraastructure Decelopment Finance Company

Ltd. (IDFC). Standard Life also started to use the services of the

HDFC Treasury department to advise them upon thir investments

in India. Towards the end of 1999, the opening of the marketlooked very promising and both companies agreed the time was

right to move the operation to the nect level. Therefore, in January



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Bhusawal. Area.

2000 an expert team from the UK hoined a hand picted team

fromHDFC to form the core projectr team, bvased in Mumbai.

Around this time Standard Life purchased a further 5% stke in

HDFC and a 5% stake in HDFC Bank.

In a further development Standard Life agreed to participate in the

Asset Management Company promoted by HDFC to enter the

mutual fund market. The Mutual Fund was launched on 20th July

2000.

Incorporation of HDFC Standard Life Insurance Company

Limited:

The company as incorporated on 14th August 2000 under the name

of HDFC Standard Life Insurance Company Limited.

Our ambition form as far back as October 1995 was to be the

private company to re-enter the life insurance market in India. On

the 23rd of October 2000, this ambition was realized when HDFC

Standard Life was the only life company to be granted a certificate

of registration HDFC are the main shareholders in HDFC Standard

Life, with 81.4% while standard Life Owns 18.6%. Given Standard

Lifes existing investment allowed under current regulations.

HDFC and Standatd Life have a long and close relationship builtupon shared values and trust. The ambition of HDFC standard Life

is to mirror the successes of the parent companies and be the



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Bhusawal. Area.

yardstick by which all other insurance companies in India are

measured.

Mission:

We aim to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive

company in the market; rather it is a combination of several things

like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different

customers

Use of technology to improve service standards

Increasing market share.

Values:

SECURITY: Providing long term financial security to out

policyholders will be our constant Endeavour. We will be

doing this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policyholdersin us. Hence, we will aim to manage their investments very

carefully and live up to this trust.



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Bhusawal. Area.

INNOVATION: Recognizing the different needs of our

customers, we will be offering a range of innovative products

to meet these needs.

Mission is to be the vest new life insurance company in India and

these are the values that will guide us in this.



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Bhusawal. Area.

LITERATURE SURVEY

Marketing is typically seen as the task of creating, promoting, and

delivering goods and services to consumers and businesses.

Marketers are skilled in stimulating demand for a companys

products, but this if too lomited a view of the tasks marketers

perform. Just as production and logistics professionals are

responsible for supply management, marketers are responsible for

demand management. Marketing mangers seek to influence the

level, timing and compositon of demand to meet the organizations

objective.

Marketing people are involved in the marketing 10 types of

entities: goods, services, experiences, events, persons, places,

properties, organizations, information, and ideas.

GOODS: Phusical goods constitute the bulk of most countries

production and marketing effort.

SERVICES: As economis advance, a growing proportion of their

activities is focused on the production of services.

EXPERIENCES: By orchestrating several services and goods, a

firm. Con create. Stage. And market experiences. Walt Disney

Worlds Magic Kingdom represents experimental marketingcustomers visit a fairy kingdom, a pirate ship, or a haunted house.

So does the Hard Rock Caf.



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Bhusawal. Area.

EVENTS: Marketers promote time based events, such as the

Olympics. Company anniversaries, major trade shows, sports

events. And artistic performances. There is a whole profession of

meeting planners who work out the details of an event and make

sure it comes off perfectly.

PERSONS: Celebrity marketing is a major business. Years ago,

someone seeking fame would hire a press agent to plant stories in

newspapers and magazines. Today every major film star has an

agent, a personal manager, and ties to a public relations agency.

PLACES: Places-cities, states, regions, and whole nations---

compete actively to attract tourists, factories, company head

quarters, and new residents.

PROPERTIES: Properties are intangible rights of ownership of

either real property (real estate) or financial property (stocks and

bonds). Properties are brought and sold, and this requires

marketing.

PRGANISATIONS: Organizations actively work to build a strong,

favorable image in the minds of their target publics.

INFORMATION: Information can be produced and marketed as a

product. This is essentially what schools and universities produceand distribute at a price to parents, students, and communities.

IDEAS: Every market offerings includes a basic idea. Products and

services are platforms for delivering some idea or benefit.



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Bhusawal. Area.

WHAT IS MARKETING?

MARKETING is a societal process buy which individuals and

groups obtain what they need and want through creating, offering,

and freely exchanging products and services of value with others.

For a managerial definition, marketing has often been described as

the art of selling products but people are surprised when they

hear that the most important part of marketing is not selling.

Selling is only the tip of marketing iceberg.

There will always, one can assume, be need for some selling. But

the aim of marketing is to make selling superfluous. The aim of

marketing is to know and understand the customer so well that the

product or service fits him and sells it. Ideally, marketing should

result in a customer who is ready to buy. All that should be needed

then is to make the product or service available.

-PETER DRUCKER

The American Marketing Association offers the following

definition:

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, gods and

services to create exchanges that satisfy individual andorganizational goals.

MARKETING CHANNELS



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Bhusawal. Area.

To reach a target market, the marketer uses three kinds of

marketing channels Communication channels It deliver and

receive messages from target buyers, and include newspapers,

magazines, radio, television, mail, telephone, bill boards, posters,

filers, CDs audio tapes, and the internet. Beyond these

communications are conveyed by facial expressions and clothing,

the load of retail stores, and many other media. Marketers are

increasingly adding dialogue channels (e-mail and toll-free

numbers) to counter valance the more normal n=monologue

channels ( such as ads).

DISTRIBUTION CHANNELS

To display, sell. Or deliver the physical product or service(s) to the

buyer or user. They include distributor, wholesalers, retailers,

retailers and agents.

SERVICE CHANNELS

It is used to carry out transactions with potential buyers. Service

channels include warehouses, transportations companies, banks

and insurance companies that facilitate transactions. Marketers

clearly face a design problem in choosing the best mix f

communication, distribution, and service channels for theirofferings.



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Bhusawal. Area.

A Marketing channel is a set of interdependent organizations

involved in the process of making a product or service available

for use or consumption.

WHY MARKETING CHANNELS AND WHY DO THEY

CHANGE?

Demand side factors:

1. To find out the awareness of insurance in people mind. As

we have disussed that insurance is not purchased it is h=sold

byu channel of distribution so before selling it has to be made

known to the people buy making them aware. The belief that

Kife Insurance is necessary for ones life is to be made

inculcate in them.

2. To find out new Insurance Advieor and follow them up.

3. To find out new way of recruitment of Insurance Advisor as

through Internet, Walk-In-Interview or Past Experience

vases.

Supply Side factors:

Routinization of transactions: The cost of distribution, i.e.

amount mode and timing, can be minimized if the transactions are

routinized; otherwise, every transaction is subject to bargaining ,with an accompanying loss of efficiency.

Reduction in number of contacts: Without channel

intermediaries, every producer would have to interact with every



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Bhusawal. Area.

potential buyer in order to create all possible market exchange and

thus facilitate transactions.



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Bhusawal. Area.

OBJECTIVE AND SCOPE OF THE STUDY

The objective of this study is to present a dissertation for the

fulfillment of part of requirement for G.B.S Jalgaon.

The broad objective of this study is to give practical knowledge

and training to us.

The main objective was to conduct summer training to recruit

insurance advisor for HDFCLIC on the presence of various

competitors and difficult traditional market situation.

Objective Include with:

1. To find out the awareness of private insurance players in the

mind of people.

2. To set up brand image of HDFCSLIC.

3. To penetrate the traditional market which is captured by life

insurance Corporation of India.

4. To find out new advisor to HDFCSLIC.

5. To find out new way of sales promotion techniques as well as

recruitment techniques also and distribution network to

generate business.

6. To find out the attitude of new customers and existing

customers towards HDFCSLIC.Research Objective

The term Research Objective means to discover answer to

questions through the application of scientific procedures. The



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Bhusawal. Area.

main aim of research is to find out the truth which is hidden and

which is hidden and which has not been discovered as yet.

Through each research study has its own specific purpose, we any

think of research objective as falling into a number of following

broad groupings:

1. To gain familiarity with a phenomenon or to achieve new

insights into it.

2. To portray accurately the characteristics of a particular

individual, situation or group.

3. To determine the frequency with which something occurs or

with which it is associated with something else

4. To test a hypothesis of a causal relationship between

variables.

Developing research plan

After objectives ot the research project has been established, the

next task for researcher is to arrange his ideas in order and write

them in the form of an experimental plan or what can be described

as a Research plan. Research plan is essential because of

following steps:

1. Research plan helps to organize ideas in a form whereby it ispossible to look for flaws and inadequacies, if any.

2. It provides an inventory of what must be done and which

materials have to be collected as a preliminary step.



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Bhusawal. Area.

3. It is a document that can be given to others for comment.

The steps involved in developing a research plan are as follows:

a. Data source:

The task of data collection begins after research problem has been

defined and research design/plan chalked out. While deciding

about the method of data collection to be used for the study. The

researcher should keep in mind two types of data viz., Primary and

Secondary.

The primary data are those which are collected afresh and for the

first time, and thus happen to be original in character. This data is

collected by the researcher himself. The primary data is generally

collected by means of questionnaire, telephone and direct

interview, observation method etc.

The Primary Data has been collected by means of:

1. Questionnaire

2. Personal Interviews

3. Telephone Interviews

The Secondary data on the other hand, are those which are already

been collected by someone else and which have already been

passed through statistical process.When the researcher utilizes secondary data, then he has to look

into various sources from where he can obtain them. In this case he

is certainly not confronted with the problems that are usually



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Bhusawal. Area.

associated with the collection of original data. Secondary sta may

either be published data or unpublished data. Usually published

data are available in:

1. Various publications of the central, state and local governments.

2. Various publications of foreign governments or international

bodies.

3. Technical and trade journals.

4. Books, magazines and newspapers.

5. Reports prepared by research scholars, universities etc in

different fields.

6. Public records and statistics. Historical documents and other

sources of published information.

7. Reports and publications of various associations.

The sources of unpublished data are many. They may be found in

diaries, letters, unpublished biographies and autobiographies and

also may be available with scholars and research workers, trade

association, labor bureaus and other public/private individuals and

organizations.

The Secondary Data was collected form trade journals,

magazines, newspapers, reports and publications of variousassociations, reports prepared by research scholars etc.

b. Research Approach:

There are two basic approaches to research:



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Bhusawal. Area.

1. Quantitative Approach: This approach involves the

generation of data in quantitative form, which can be

subjected to rigorous quantitative analysis in a formal and

rigid fashion. This approach can be further classified into:

Inferential Approach: the purpose of inferential approach is to form

a data base from which to infer characteristics or relationship of

population. This usually means survey research where a sample of

population has the same characteristics.

Experimental Approach: this approach is characterized by much

greater control over the research environment and in this case some

variables are manipulated to observe their effect on other variables.

Simulation Approach: It involves the construction of an artificial

environment within which relevant information and data can be

generated. This permits an observation of the dynamic behavior of

a system under controlled conditions.

Inferential Approach has been used in this project.

II. Qualitative Approach: this type of research is concerned with

subjective assessment of attitudes, opinions and behavior. Research

in such a situation is fiction of researchers insights and

impressions. Such and approach to research results either in non-quantitative form or in the form which are not subjected to

rigorous quantitative analysis.



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c. Research Instrument: Paper based questionnaire,

Interviews.

d. Sampling Plan:

Sampling is a selection of units from the entire group called the

population or universe of interest. In marketing a sample is a

particular segment or part of the market and it is the focus for

taking the marketing decisions which can be applied to the entire

market. The unit included in the sample were individual

respondents, house wives, families, dealers, firms, and so on. The

unit included in the sample can be easily approached to obtain the

desired information for taking the desired marketing decisions.

Sampling population: All the residents of and

Bhusawal.

Sampling Frame:

1. Population Frame: All individuals of

Bhusawal area, who fulfill the eligibility

criteria. Obtained through telephone

directory.

2. Time Frame: 2 months in present scenario.

Sampling Method: sample random sampling.

Sampling Plan: Each unit in population has an

equal chance of being included in the sample. For N



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sampling units, the chance of each unit being

selected is 1/n.

Sample Size: Sample Size is 200.

Processing and analysis of data

The data, after collection, has to be processed and analyzed in

accordance with the outline laid down for the purpose at the time

of developing trhe research plan. This is essential for ensuring that

we have all the relevant data for making contemplated

comparisons and analysis. The term processing implies editing,

coding, classification and tabulation of collected data so that they

are amenable to analysis.

Thus, in the process of analysis, relationships or differences

supporting or conflicting with original or new hypotheses should

be subjected to statistical tests of significance to determine with

what validity data can be said to indicate any conclusions.

Processing operations:

Various processing operations are as follows:

Editing:

Editing of data is a process of examining the collected raw data

(especially in surveys) to detect errors and omissions and to correct

theses when possible. Editing involves a careful scrutiny of the

completed questionnaires. Editing is done to assure that the data

are accurate, consistent with other facts gathered,. Uniformly



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which means that a specific answer can be placed in one and only

one cell in a given category set.

Coding decisions should usually be taken at the designing stage of

the questionnaire. This makes it possible to precede the

questionnaire choices and which in turn is helpful for computer

tabulation. But in case of hand coding some standard method can

be used. One such standard method is to code in the margin with a

colored pencil. The other method can be to transcribe the data form

the questionnaires to a coding sheet. Whatever the method adopted,

the coding errors should be altogether eliminated or reduced a to

minimum level.

Classification

Most research studies result in a large volume of raw data which

must be reduced into homogeneous groups if we are to get

meaningful relationships. This fact necessitates classification of

data, which happens to be the process of arranging the data in

groups or classes on the basis of common characteristics. Data

having a common characteristic are placed in one class and in this

way the entire data get divided into a number of groups or classes.

Classification can be one of the following two types, they are:Classification According To Attributes:

According to these type of classification, data are classified on the

basis of common characteristics which can either be descriptive



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(such a literacy, sex etc) or numerical (such as weight, height,

income etc). Descriptive characteristics refer to qualitative

phenomenon, which cannot be measured quantitatively; only the

presence or absence in the individual item can be noticed. Data

obtained this way on the basis of certain attributes are known as

statistics of attributes and their classification is said to be

classification according to attributes.

Classification According To class-intervals: the numerical

characteristics refer to quantitative phenomenon which can be

measured though statistical units. Data relating to income,

production, age, weight, etc. come under this category. Such data

are known as statistics of variables and are classified on the basis

of class intervals.

Tabulation

When a mass of data has been assembled, it becomes necessary for

the researcher to arrange the same in some kind of concise and

logical order. This procedure is referred to as tabulation. Thus,

tabulation is the process of summarizing raw data and displaying

the same in compact form for further analysis. In a broader sense,

tabulation is an orderly arrangement of data in columns and rows.



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Atulkumar r.patil Project

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